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Approaches to Bending the Health Care Cost Curve

Monday, January 28, 2013

Health spending in the U.S. climbed to $2.7 trillion and constituted 17.9 percent of the nation’s gross domestic product (GDP) in 2011. A recent report released by actuaries at the Centers for Medicare and Medicaid Services (CMS) found that health spending as a share of GDP remained steady at 17.9 percent from 2009 through 2011. Despite that stability, some analysts warn that, as the economy improves and the population ages, cost increases could again accelerate. Effects of cost constraining provisions in the Patient Protection and Affordable Care Act (PPACA) are largely unknown, since major provisions will not be implemented until 2014.

Are there changes to PPACA that could slow down health care spending growth? How can the public and private sectors collaborate to effectively address the problem? What role can market-based incentives and reforms play in a solution? Are there examples of provider payment or delivery innovation that could help? Should spending targets be established? If so, how? What are other approaches to stabilizing health care spending?

A distinguished panel of experts addressed these and related questions.

Stu Guterman, vice president and executive director of The Commonwealth Fund’s Commission on a High Performance Health System, will discuss the commission’s new report on confronting costs.

A Commonwealth Fund report includes recommendations for reforming physician payment and accelerating meaningful use of health information technology to reduce costs in health care, The Fund's Stuart Guterman said at a Jan. 28 briefing, Stabilizing U.S. Health Spending: Approaches to Bending the Cost Curve. He said there is a chance to build on the current momentum in the public and private sectors, through bottom-up innovation, collaboration in the health care system and insurance exchanges. (Photo by James Ryder)

Physicians, nurses and other health care workers must "work to the top of their license" as one way to reduce health care costs, Karen Ignagni of America's Health Insurance Plans said at a Jan. 28 Alliance briefing, Stabilizing U.S. Health Spending: Approaches to Bending the Cost Curve. (Photo by James Ryder)

The consolidation created by better coordinated care can result in improved health outcomes and lower costs, but it can also have the unintended consequence of raising prices and not improving outcomes, Robert Galvin of Equity Healthcare and The Blackstone Group said at a Jan. 28 Alliance briefing, Stabilizing U.S. Health Spending: Approaches to Bending the Cost Curve. (Photo by James Ryder)

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